Illinois Amendment to Gambling Expansion Bill Softens Bad Actor Clause Illinois Amendment to Gambling Expansion Bill Softens Bad Actor Clause
Krappweis, SXC Standard Restrictions
Key Takeaways
  • The latest amendment now requires operators and vendors to have “been convicted of accepting” wagers in violation of US law.

A recent amendment to the latest gambling expansion bill being considered by Illinois politicians includes modifications of “bad actor” provisions in the sections related to internet gambling that may remove roadblocks for previous US-facing online poker sites.

The previous language in amended Senate Bill 1739 contained a bad-actor provision as follows: “No Internet gaming license shall be granted to any applicant who has accepted wagers via the Internet in contravention of this Section or United States law in the 10 years preceding the application date.”

The latest amendment now requires operators and vendors to have “been convicted of accepting” wagers in violation of US law. The change alters the ambiguity of the original terms regarding online license suitability.

The change in language assures that an automatic blackout will not drop into place that would affect all previous US-facing online poker entities, even those who departed the American market after the late-2006 passage of the UIGEA.

Among the companies that left the US in late 2006 is 888 Holdings PLC. 888 Holdings has already been approved by Nevada regulators, announced plans for its own All American Poker Network, and has already struck two major deals with other Nevada online-poker licensees, including Caesars Entertainment and WMS Gaming, Inc.

WMS Gaming, in turn, is part of the WMS family of companies, a prominent manufacturer of casino slot machines and other equipment, with offices in Chicago and Waukegan, IL. The language in Link’s original proposal might have adversely affected possible future business deals for WMS should the company’s business agreement with 888 be endangered.

Legislation that would legalize online gambling in Illinois was introduced last week and was promptly approved by a state senate committee. The 555-page proposal included provisions to authorize various forms of online gaming, including poker, amid a more heated battle within Illinois over the possible issuance of several new licenses for land-based casinos in the state.